Dollar Gains Ahead of Fed Decision Amid Hawkish Expectations

The US dollar is gaining ground ahead of the Federal Reserve's interest rate decision. The DXY Index, which tracks the value of the US dollar against a basket of other currencies, has moved higher as traders wait for the Fed's announcement.

A recent report from the Federal Reserve indicates that there is a 92.7% probability that the Fed will raise the federal funds rate by 25 basis points. This expectation has contributed to the strength of the US dollar in recent days.

Meanwhile, the EUR/USD pair is losing ground as traders prepare for the Fed's decision. The pair has pulled back below the support level at 1.1500-1.1515 and may head towards the next support at 1.1420-1.1435 if it continues to decline.

The GBP/USD pair, on the other hand, has tested new lows as traders bet on a hawkish Fed and react to inflation data from the UK. The pair declined below the support at 1.3470-1.3485 and may head towards the next support at 1.3400-1.3415 if it continues to decline.